Aon acquires USI Insurance Services from KKR for $17 billion
Sector-wide consolidation in U.S. insurance brokerage is accelerating, and the excess and surplus segment is pulling it along. Aon agreed Monday to acquire USI Insurance Services from KKR and other shareholders for $17 billion in…
Key takeaways
- Aon agreed to acquire USI Insurance Services from KKR and other shareholders for $17 billion in cash, in a deal signed August 30, 2026.
- USI, based in Valhalla, New York, is the tenth largest U.S. insurance broker, with about $3 billion in annual revenue and more than 10,500 employees across nearly 200 offices.
- Aon will fund the acquisition entirely through new debt, pause share buybacks near-term, and expects the deal to add to adjusted earnings per share in 2028.
- The acquisition is Aon's second major middle-market deal in two years, following its $13 billion purchase of NFP in 2024.
- KKR's exit delivered approximately six times its return on a 2017 investment and 3.4 times return on capital across the life of its position, which began when it took USI private in 2014 for $4.3 billion.
Sector-wide consolidation in U.S. insurance brokerage is accelerating, and the excess and surplus segment is pulling it along. Aon agreed Monday to acquire USI Insurance Services from KKR and other shareholders for $17 billion in cash, its second major middle-market deal in two years following the $13 billion purchase of NFP in 2024.
USI, based in Valhalla, New York, is the tenth largest U.S. insurance broker, with approximately $3 billion in annual revenue and more than 10,500 employees across close to 200 offices nationwide. The firm serves mid-sized businesses across property and casualty, employee benefits, personal risk, and retirement lines. Aon said the acquisition would deepen its position in a U.S. middle-market segment it values at more than $40 billion and expand its reach in the E&S segment, which Aon described as among the industry's fastest-growing lines. Following the close, USI Chairman and CEO Mike Sicard will become president of Aon and global CEO of its middle-market business, reporting to Aon CEO Greg Case.
Debt structure and the capital decision
Aon said it will fund the acquisition entirely through new debt and anticipates maintaining an investment-grade rating. Share buybacks are on hold in the near term as the company prioritizes paying down that debt. The deal is expected to add to Aon's adjusted earnings per share in 2028, the company said, and Aon projected $395 million in annual run-rate net adjusted EBITDA from revenue and cost savings across the combined middle-market platform. For a $17 billion deal financed entirely at new issuance, the rate environment Aon enters when it comes to market will shape the economics of the paydown.
KKR's exit from a 12-year position
For KKR, the sale closes a long-running position. The private equity firm originally took USI private alongside Canadian pension fund Caisse de dépôt et placement du Québec in a $4.3 billion transaction in 2014; KKR said the exit delivered approximately six times its return on a 2017 investment and a 3.4 times return on capital across the full life of its position. BofA Securities and Citi advised Aon on the transaction; Goldman Sachs, Insurance Advisory Partners, and Morgan Stanley advised KKR, according to CNBC.
The deal was signed on August 30, 2026. Closing is subject to regulatory approvals, with completion expected in the fourth quarter of 2026. On balance, adjusted EPS accretion is not projected until 2028, a timeline that runs alongside a substantial new debt load and whatever the curve delivers in the interim.
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